Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
$ o4 |3 T4 G' b! s. q: l2 texpect much from Crude Oil producers and future is not with the
. ~1 L5 f- j9 x1 x' @" ^6 kcompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
5 N! `: O3 r  |9 h! G: Ycrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
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0 \, K2 z* R) {( |0 {- GRecently OPEC reduced crude oil production twice over just a few
2 v9 t. ^: c; X- cmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.


There are several reasons the price of oil is decreasing in the face
  E$ \( x8 e& k& H/ Iof so much news. These reasons are:

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1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
Arabia.
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2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
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! x4 t" H  d6 W% s6 n+ p3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.

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4. Production of bio-fuels is beginning to reach critical mass. Bio
$ ]2 [3 u6 A. M) sfuel is being produced from many plants and algae. The production
7 }+ k- P. o3 k1 O# y0 z9 ?  Ypotential per acre in some cases is astounding. Many countries are
. N# @5 {5 S6 ?4 k( z5 @racing to produce bio fuels.

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5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
8 S7 ~0 ^" }5 ^% ?% u- qproducing 30,000 gallons of bio-diesel per day from pork fat.
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6. There are 99 nuclear reactors in various stages of planning and
; Z& L5 _" X5 a4 S/ N* N% p" Wconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
, x2 `' m4 r" y0 ?will replace oil.
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7. Every company in any form of transportaion business is replacing
( O1 Y5 z  @1 [# m( H& c2 yolder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
4 o6 X6 P6 p# j! I6 ?are experiencing 20% to 25% better fuel econony with the new
equipment.


/ P, v0 \$ S% r$ ]Airlines are flying airplanes with bio-fuel. They are finding the bio-
( T9 M  M. _, H, W, D: _1 Zfuel is cleaner and performs better than jet fuel.
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8 i: b# o* w# r- n! V8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.
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5 L* J9 w" E1 p8 ?9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
( f! Q. M+ W8 A* W7 m) goil wells.
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10. Solar, wind and ocean energy is displacing oil as an energy
: U  s$ v: k$ vsource. Three new wind turbines are being erected every day in the US.


1 L& I  W2 t  m4 r* q0 o: f' x6 CEach of the above by itself will not make a large difference in the
& D+ W' U# u( g% V! u, \4 uprice of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
to control oil prices.
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( b# W# B9 X( `6 O) t/ E. Q2 ?$ z3 DWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
, y) L' [6 E3 k; s, {, k% hvalue .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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, }* l/ f) T* ?! z7 _5 }2 R& Y. X1 b) Y' sThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only